Alterra Power Announces Release of Lender Waiver at Toba Montrose

VANCOUVER, July 17, 2014 /CNW/ - Alterra Power Corp. (TSX: AXY) is
pleased to announce that the Toba Montrose credit agreement has been
amended to remove an insurance-related waiver, paving the way for the
resumption of regular equity distributions from the project. The
project partnership had previously agreed with its lenders to
temporarily suspend distributions until satisfactory resolution of
insurance-related issues related to a naturally-occurring rockslide at
the project in December 2012. The project has now secured new
insurance, effective immediately, at substantially the same coverage
terms that existed prior to the rockslide. Alterra expects to receive
an equity distribution of C$7.6 million from the project in August 2014
(from a total project distribution of C$19.0 million).

Jay Sutton, Alterra's Vice President of Hydro Power, said "The Toba
Montrose facility continues to run at full strength since we completed
the rockslide repairs and installed new protective measures last
September. Year to date the facility is producing at 99% of plan. With
all insurance matters satisfactorily behind us, we are back on plan and
looking forward to decades of reliable cash flow from this premier
hydro asset."

About Alterra Power Corp.

Alterra Power Corp. is a leading global renewable energy company,
operating six power plants totaling 568 MW of generation capacity,
including British Columbia's largest run-of-river hydro facility and
largest wind farm, two geothermal facilities in Iceland, and a
geothermal plant in Nevada. Alterra owns a 262 MW share of this
capacity, generating approximately 1,300 GWh of clean power
annually.Alterra has an extensive portfolio of exploration and
development projects and a skilled international team of developers,
explorers, builders and operators to support its growth plans.

The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.

Cautionary Note Regarding Forward-Looking Information

Certain statements and information included in this news release are
"forward-looking information" within the meaning of Canadian securities
laws that involve risks and uncertainties. Forward-looking information
relates to future events or future performance and reflects
management's expectations and beliefs regarding future events as of the
date hereof. Examples of forward-looking information in this news
release include: information and statements regarding prospective
results of operations, the timing, reliability and duration of future
cash flows, including the proposed equity distribution of the Toba
Montrose general partnership in August 2014 and annual generation.
Forward-looking information is based on factors or assumptions that
were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking
information relates to future events and conditions, by its very nature
it requires making assumptions and involves inherent risks and
uncertainties. Alterra cautions that although it is believed that the
assumptions are reasonable in the circumstances, these risks and
uncertainties give rise to the possibility that actual results may
differ materially from the expectations set out in the forward-looking
information. Material risk factors and assumptions include: weather and
hydrology which may differ from Alterra's long term forecasts,
operating costs and plant availability which may be different than
expected due to unexpected maintenance and repairs, shutdowns due to
equipment failure, or catastrophic events, and changes to the
regulatory regime which could impact Alterra's ability to operate, as
well as those set out in the management's discussion and analysis
section of Alterra's most recent annual report and quarterly report,
and in Alterra's Annual Information Form for the year ended December
31, 2013. Although Alterra has attempted to identify important factors
that could cause actual actions, events or results to differ materially
from forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking information
will prove to be accurate and undue reliance should not be placed on
forward-looking information. Except as required by law, Alterra
undertakes no obligation to update any forward-looking information to
reflect new information, subsequent or otherwise.